The Cost of a New Windshield Wiper on a Delivery

question 132

Multiple Choice

The cost of a new windshield wiper on a delivery vehicle would be classified as:

• A)A capital expenditure.
• B)A revenue expenditure.
• C)Part of the cost of goods sold.
• D)An unusual and infrequent expense.

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Definitions:

Contract

A pact between multiple parties that has the power of law to enforce its terms.

Creditor Beneficiary

A third party that benefits from a contract in which the promisor agrees to pay the promisee's debt to the beneficiary.

Donee Beneficiary

A third party who benefits from a contract between two other parties, where the intent is to gift the benefit to the third party.

Third-Party

An entity that is involved in a transaction or legal matter indirectly, separate from the two principal parties directly involved.